Posted by Brian_wa on July 19, 2007 at 10:50:14:
Thank you for such insight. I’m looking for something like this to determine if it’s legal or worth the trouble.
I’ll keep looking into this to find a graceful solution.
Brian
Would this ever work? - Posted by Brian_wa
Posted by Brian_wa on July 18, 2007 at 10:43:00:
I noticed that a lot of investors with cash available are bidding up houses at foreclosure auctions. These investors, of course, track such foreclosures via notice of trustee sales.
Well, what if I quit claim one of my properties to a reputable attorney to act as my trustee and then record a “notice of Trustee Sale” at the recorder’s office… This won’t be a foreclosure auction but simply my trustee selling my house to the highest bidder (hence the loosely based term Notice of Trustee Sale). This notice of course would include the auction date, time, and place, and all other terms that I may deem appropriate. I’ll also make sure that this auction is held at a place and time that is convenient to these investors.
Hopefully these investors would bid on the house and I would then be able to sell it rather quickly.
Would this work? Is this legal? I’m just brainstorming here. I’m not planning to do anything illegal. Asking doesn’t hurt anyone ok Joe?
Brian
Re: Would this ever work? - Posted by Joe Kaiser
Posted by Joe Kaiser on July 19, 2007 at 15:43:00:
Brian,
Your questions tell far more than they ask.
Joe
Re: Would this ever work? - Posted by Todd (AZ)
Posted by Todd (AZ) on July 19, 2007 at 05:52:52:
Brian,
Be very careful here, that could be bordering on fraud. You can hold a public auction (and check if your area requires any special permits or licenses to hold a public auction), but if you falsely record a property as being in default in order to use the public court house as your auction floor, that could be bordering on some problems for you. I would avoid this and simply look into your own auction. However, realize you are taking a major risk here too, you are gambling that you will get a high price … what if you happen to get a really low price? You could be obligated to sell it at any price unless you put a reserve, in which case many investors will not go to a reserve auction.
Do your homework, you are walking a thin line there and even if it’s not wrong to do, you could get a bad reputation with other investors for holding a false foreclosure auction.
Todd
Re: Would this ever work? - Posted by Natalie-VA
Posted by Natalie-VA on July 18, 2007 at 16:55:15:
Hi Brian,
One of the FC attorneys in our town did some of these when we were in the seller’s market. Instead of trying to represent it as a trustee sale, she just advertised “public sale” with similar terms as the trustee sales. She had the newspaper put it in the legals section with all of the other trustee sales, and it sort of just blended in with the others. She also held them at the courthouse at the same time as her trustee sales. I never actually made it to one of these to see what the results were. She told me she would do it for 5%. I’m not sure if that included her paying for the advertising fees or not. If it generated a higher bid, it would be worth it.
I thought about doing it myself, but never got around to it. There’s one attorney in town that seems to gather the most interest for his trustee sales. The bids consistenly go sky high. If there’s an attorney in your town that normally generates high bids, I would hire him to do it. One concern I had was that I don’t want investors breaking into my houses to see the inside.
Let us know if you try it.
–Natalie
Re: Would this ever work? - Posted by ken
Posted by ken on July 18, 2007 at 16:21:40:
Sounds very creative to me.Let us know how it goes if you try it
Re: Would this ever work? - Posted by Brian_wa
Posted by Brian_wa on July 19, 2007 at 15:49:31:
But does it hurt anyone? Did it hurt you? Sowie
Brian